New Delhi

India is witnessing rising interest from global real estate investors as strong demand across commercial property segments and attractive returns position the country as the highest-yielding real estate market in the Asia-Pacific region, according to a survey by real estate consultancy firm CBRE.

The firm’s Q1 2026 Asia Pacific Cap Rate Survey stated that India posted the highest real estate yields across key asset categories such as office spaces, retail, logistics, hotels and student housing. The trend is being driven by increasing commercial activity, expansion of businesses and a steady rise in institutional investments.

The report also highlighted that India registered a 189 per cent year-on-year jump in real estate investment volumes during the January-March quarter of 2026, making it the second-fastest growing market in the Asia-Pacific region after Singapore.

Anshuman Magazine said investor confidence is being supported by India’s strong economic fundamentals, expanding corporate sector and consumption-driven young population.

He noted that global investors, who had earlier remained cautious, are now increasingly exploring opportunities to deploy capital in India, with momentum expected to strengthen further as more institutional-quality assets become available.

According to the survey, Grade A office properties in India’s central business districts offered cap rates ranging between 7.50 per cent and 8.40 per cent, considerably higher than markets such as Singapore, Tokyo and Seoul.

The student housing segment in India recorded yields between 8.50 per cent and 9 per cent, while institutional-grade logistics assets generated cap rates of 7.15 per cent to 7.75 per cent, the report added.

The survey further pointed out that the investment surge is being aided by growing participation from domestic institutions, family offices and international investors through direct acquisitions, REITs and structured debt platforms.

Ada Choi said India’s attractive yield premiums are being complemented by strong occupier demand, making the market particularly compelling for investors.

She added that India’s combination of robust investment growth, resilient demand and attractive returns has made it one of the most appealing real estate investment destinations in the Asia-Pacific region.

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The report also underlined that the expansion of Global Capability Centres (GCCs), infrastructure development and rising domestic consumption are expected to continue supporting long-term demand across office, logistics, retail and hospitality real estate sectors.